BUSINESS OF DEBT COUNSELLING

MOST REGRET TAKING OUT A LOAN

WHILE South Africans continue to pile up debt, a recent survey by debt counselling firm Debtsafe shows that most consumers regret doing so. Of 1 070 respondents who took part in the Debtsafe Credit Savvy survey, 56% of them said they regretted taking out credit. The survey also explored consumers’ overall reasons for using credit: 37% said it was needed for living expenses, 21% said it was to pay for school fees and 21% wanted it to buy a new car. The respondents indicated that much of their debt is unsecured:

31% have credit card debt and 44% have personal loans. And, worryingly, 27% of respondents indicated that they had taken out credit knowing they might not be able to afford the monthly repayments.